NV Energy sues data-center developer Tract over hidden-cost arbitration plan

NV Energy has taken legal action against Colorado-based Tract, accusing the data-center builder of trying to bypass the Public Utilities Commission of Nevada by moving cost-allocation decisions to a private arbitration. The suit, filed in Washoe County, says the PUCN, a three-member board appointed by the governor, must oversee how new generation capacity is added for large loads. Tract’s planned Peru Shelf and South Valley sites, located about 20 miles east of Reno, would together draw roughly 2,025 MW, enough for up to 1.5 million homes.

While Tract intends to install temporary gas and diesel generators, the utility warns that the broader plan could shift billions of dollars in infrastructure expenses onto existing customers. Tract disputes the allegation, insisting it will cover its “fair share” and has never received preferential treatment. Industry analysts note that Nevada’s integrated resource plan projects a need for 22,000 MW of new capacity, driven largely by data-center growth, underscoring the stakes of the dispute.